By Stacie Clifford Kitts, CPA
A 38 year old money manager and part time pilot who allegedly stole millions from investors, tried to fake his own death by jumping out of the plane he was piloting just after informing air-traffic controllers that his windshield had imploded. The plane subsequently crashed in East Milton Florida.
Once he had parachuted to the ground, the crooked money manager approached a home in Alabama and claimed that he had been in a canoeing accident.
The local police took him to a hotel where our crook checked in under a fake name. Authorities later discover that he had hidden a motorcycle nearby and had apparently used it to skip town. The bad guy has yet to be caught.
Sounds like the plot to a bad movie – but sadly, it is not.
People who handed their money over to Heritage Wealth Management described Marcus Schrenker (our crook) as a smooth talker according to CNN.
Apparently, Mr. Schrenker was stealing money from investors – who were also his friends and neighbors – through an annuity scheme.
If you have been following any of the Bernie Madoff ponzi fiasco you might notice that this story is eerily similar in an important way. In both cases, investors claim to have been clueless about what their supposed money managers were doing with their money – in the Madoff case all they really cared about – it seemed – was the amazing return they appeared to be getting on their investments.
As reported by CNN, many people who handed their money over to Mr. Schrenker indicated that they had little information about what he was doing with it or how it was being invested.
In light of recent revelations, handing over 100% of your wealth to one person to manage is obviously a choice that should be highly scrutinized.
In my opinion, both of these story’s represent clear examples of why we should diversify our money managers and not just our investment choices.
Lets face it, how would you know if your money manager was ripping you off? Mr. Madoff even handed out fake account activity statements to his investors. Heck, he supposedly had his funds audited by an accountant for heaven sakes.
Frankly, you could have called either of these men your friend – and yet they still would have stolen your money.
Stacie's Tax Stuff 